OWNER OCCUPIED Home Improvement Loan Program 2019

OWNER OCCUPIED HOME IMPROVEMENT LOAN PROGRAM

250 Elizabeth Lake Rd. Pontiac, MI 48341-0414

07-01-2020

Thank you for inquiring about the Oakland County Home Improvement Loan Program. I am sure you will find this is an excellent way to make some of the repairs and improvements you need.

The OCCHI division programs are funded through the U.S Department of Housing and Urban Development (HUD). We have been doing home improvement loans in Oakland County since 1976.

If you are interested in a home improvement loan, complete the attached loan application, sign and date the application, paying special attention to the "Required Documentation" page 3. Submit copies of all documentation that applies to members of your household. We are required to consider the "gross income" for all household members. The income limits can be found on page 2 of the loan packet.

All loans are 100% Deferred. This is a loan in which only the principal is repaid at a future time, when you sell, move, or lease your home. There are no payments or interest charged on the principal.

Complete the attached application. If we have any questions or additional documentation is needed. An eligibility coordinator will contact you. Send your application as soon as possible, as all applications are processed on a first come first serve basis.

COMMUNITIES PARTICIPATING IN OAKLAND COUNTY'S HOME IMPROVEMENT PROGRAM The following fifty-seven communities have agreed in writing to participate in Oakland County's Home Improvement Program. As participating communities, local residents apply directly to Oakland County for their home improvement needs.

Cities: Auburn Hills, Berkley, Birmingham, Bloomfield Hills, Clarkston, Clawson, Farmington, Farmington Hills, Ferndale, Hazel Park, Huntington Woods, Keego Harbor, Lathrup Village, Madison Heights, Northville, Novi, Oak Park, Orchard Lake Village, Pleasant Ridge, Pontiac, Rochester, Rochester Hills, Royal Oak, Southfield, South Lyon, Sylvan Lake, Troy, Walled Lake, Wixom

Townships: Addison, Bloomfield, Brandon, Commerce, Groveland, Highland, Holly, Independence, Lyon, Milford, Oakland, Orion, Oxford, Rose, Royal Oak, Springfield, Waterford, West Bloomfield, White Lake

Villages: Beverly Hills, Franklin, Holly, Lake Orion, Leonard, Milford, Ortonville, Oxford and Wolverine Lake

OAKLAND COUNTY COMMUNITY & HOME IMPROVEMENT

250 Elizabeth Lake Rd., Ste. 1900

Pontiac, MI 48341-0414 (248) 858-0493

EQUAL OPPORTUNITY PROGRAMS/ACTIVITIES

OWNER OCCUPIED OAKLAND COUNTY HOME IMPROVEMENT

LOAN APPLICATION

07-01-2020

Home improvements can seem unaffordable. To help qualified families with necessary home improvements and repairs, Oakland County Community & Home Improvement (OCCHI) provides home improvement loans. There is no interest and there are no monthly payments. When you sell, move or lease your home, the total loan is due and payable.

Repairs we can do... This program addresses necessary basic home improvement issues, with an emphasis on health

and safety items. The following is a list of eligible home improvements your home might need:

Barrier Free Access Heating System Windows Siding

Bathrooms Electrical Systems Doors Basement Waterproofing

Plumbing Insulation Porches Structural Defects

Wells Roofs Kitchens

Water & Sewer Lines Septic Systems Chimneys

What we don't do... Additions, improvements on condominiums, mobile homes, rental units, accessory buildings,

landscaping, painting, patios and fencing.

GROSS HOUSEHOLD INCOME LIMITS

Federal Regulations require us to anticipate income, using the household's current circumstances to project future income. WE ARE TO ASSUME THAT TODAY'S CIRCUMSTANCES WILL CONTINUE FOR THE NEXT 12 MONTHS.

Current gross income is not last year's income. Gross income includes the earnings of all adult household members plus the benefits of all household members. Benefits include child support, Social Security benefits, alimony, etc.

HOUSEHOLD SIZE 1 Person 2 Person 3 Person 4 Person 5 Person 6 Person 7 Person 8 Person

MAXIMUM INCOME $44,000 $50,250 $56,550 $62,800 $67,850 $72,850 $77,900 $82,900

Effective 7-01-2020

Program guidelines are subject to periodic changes without notice.

Page 1 of 3

ADDITIONAL INFORMATION....

1. Your gross household income (before deductions) cannot exceed the maximum HUD income guidelines for your household size, see page 1 for current income limits. ? There must be enough household income to maintain thehousehold.

2. You must own the home and it must be your primary residence. ? Our staff will verify homeownership through the Oakland County Clerk Register ofDeeds. ? LAND CONTRACTS are not eligible.

3. Your mortgages and home equity loans must be current. 4. Your property taxes must be current.

? Taxes are verified through the Oakland County Treasurer's office.

5. There must be enough equity (loan value) available. ? Equity is determined by calculating the State Equalized Value (SEV) x 2.5 then subtracting all open liens against the property.

6. Any bankruptcy must be discharged.

This program is for "major repairs" therefore total contracts must be a minimum of$7000. The loans cannot be used to pay property taxes, insurance, or pay off credit cards, utilities, etc. You can secure only one loan through this program in any five (5) year period.

************************************************************************************ 1. Following the preliminary eligibility review, a Housing Rehabilitation Property Standards (HRPS) review will

be performed by the assigned Field Technician. ? The work to be done will be identified by you & your Field technician based on Housing Rehab Property Standards. ? Your Field Technician will complete property specifications, coordinate the bids and monitor the construction work.

o Bids are only requested from the OCCHI "pre-approved" contractor list. 2. There will be no exchange of cash between Oakland County and the homeowner.

? Oakland County makes payments directly to the selected contractor upon satisfactory completion of the work.

3. The estate is responsible to repay this Oakland County Community & Home Improvement mortgage.

************************************************************************************

If you wish to refinance your existing mortgage, your lender will request a subordination from Oakland County. ? Oakland County will subordinate for better mortgage terms. We will not allow cash out.

Oakland County retains the right to decline any subordination request that jeopardizes the ability of Oakland County to collect on its outstanding loan.

COMPLETE THE ATTACHED APPLICATION. IF WE HAVE ANY QUESTIONS OR ADDITIONAL DOCUMENTATION IS NEEDED, WE WILL CONTACT YOU.

Revised: 07/01/2020

MAIL YOUR LOAN APPLICATION AND SUPPORTING DOCUMENTATION TO:

OAKLAND COUNTY COMMUNITY & HOME IMPROVEMENT

250 Elizabeth Lake Rd., Ste. 1900 Pontiac, MI 48341-0414 Ph: (248) 858-0493

Page 2 of 3

REQUIRED DOCUMENTATION

Please submit copies of the following documentation. BANK STATEMENTS CANNOT BE USED AS DOCUMENTATION.

MI DRIVER'S LICENSE AND/OR MICHIGAN ID - for any household member 18 years or older, a copy of both the front and back

MARRIAGE LICENSE, if you have married since you purchased the home DIVORCE DECREE complete copy DEATH CERTIFICATE is needed if anyone listed on your deed has died since the deed was prepared.

HOMEOWNERS INSURANCE POLICY - A COPY of the "declaration page", which has the: ? Homeowner's name and property address ? Agents name and phone number ? Amount of dwelling coverage ? Policy expiration date

MORTGAGE STATEMENTS, for First Mortgage and Home Equity Mortgage/Loan

Showing the: Homeowner's Name and Address, Current Principal Balance, Last Paid and Next Due

If you received a MORTGAGE MODIFICATION, submit a copy of the Modification of Mortgage loan papers.

FEDERAL INCOME TAX FORMS, Sign and date a copy of your most recently filed 1040 or 1040 EZ Individual Federal Income Tax forms including copies of your W2's, 1098, 1099 forms and all Schedules. STATE OF MICHIGAN INCOME TAX FORMS, Sign and date a copy of your most recently filed MI-1040 or MI-1040 EZ State of Michigan Individual income tax forms, including all Schedules and; Homestead Property Tax Credit forms.

IF YOU ARE SELF-EMPLOYED SUBMIT 2 YEARS FEDERAL AND STATE OF MI INCOME TAX FORMS.

TAX FORMS ARE USED TO VERIFY RESIDENCY AND NUMBER IN HOUSEHOLD INCOME ELIGIBILITY IS DETERMINED BY USING YOUR CURRENT GROSS HOUSEHOLD INCOME, NOT LAST YEARS INCOME.

CURRENT GROSS HOUSEHOLD INCOME

SUBMIT COPIES OF ALL DOCUMENTATION THAT APPLIES TO ALL MEMBERS OF YOUR HOUSEHOLD

WE ARE REQUIRED TO ANTICIPATE INCOME. WE ARE TO ASSUME THAT TODAY'S CIRCUMSTANCES WILL CONTINUE FOR THE NEXT 12 MONTHS.

EMPLOYMENT If you or any adult (18 years of age or older) living in the household is employed, submit the most recent pay stubs for two consecutive months. If paid weekly submit 8 check stubs. If paid bi-weekly submit 4 check stubs. If paid monthly submit 2 check stubs.

UNEMPLOYMENT If you or any adult (18 years of age or older) living in the household is unemployed, submit documentation of Unemployment Benefits Payments. The information is available at: uia , (select) Online applications available, (select) UIA Online Services for Unemployed Workers; or a copy of your Unemployment Benefit Award Letter

SOCIAL SECURITY BENEFITS submit a copy of your Annual Social Security Award Letter (showing the Gross Benefit Amount). If you do not have a copy of this letter you can phone the Social Security office at (800) 772-1213 and request documentation of your benefits.

PENSION or DISABILITY, submit a copy of the most recent check stub

CHILD SUPPORT Submit a Court Order Child Support Information Report for the last six (6) months. This can be obtained in person from the Friend of Court Office, in the County where Child Support was granted, (ex: Oakland County, Genesee County, Wayne County).

FULL-TIME STUDENT (12 credits or more): Any household member 18 or older, excluding borrower and co-borrower, must submit proof of current enrollment (ex: report card, student registration form) and if employed a copy of their last two months check stubs.

PUBLIC ASSISTANCE, submit a copy of most recent Budget Letter or Family Independence Agency Quarterly Statement

PARSONAGE ALLOWANCE submit documentation from your parish for the year.

Mail the application and documentation:

Oakland County Home Improvement Loan Program 250 Elizabeth Lake Rd., Ste. 1900

Pontiac, MI 48341-0414

Ph: (248) 858-0493

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